Vietnam unlikely to face 10-year-economic crisis cycle: Report

The Hanoitimes – There remain six challenges to Vietnam`s economy in its quest of rapid and sustainable development. Vietnam is unlikely to face the 10-year-economic crisis in the 2018 – 2019 period, however, there remain six major challenges to the economy, stated a report by state-run Bank for Investment and Development of Vietnam (BIDV). Illustrative photo. Economic crisis unlikely to happen BIDV’s experts stated that there were clear signs of economic-financial crisis in Vietnam in each 10 year cycle from 1988 – 1989, 1998 – 1999, and 2008 – 2009, however, there is little evidence that the cycle could be repeated in the 2018 – 2019 period. The BIDV’s report pointed to six major differences between the previous and current periods, which include: (1) Vietnam’s credit growth has increased at more appropriate rate; (2) the government has stepped up effort to ensure a stable and healthy development of the finance – banking system, while the reasonable interest rate has created positive impact on growth; (3) Vietnam’s budget balance has been shifted towards sustainability, in which the structure of credit is focused on manufacturing sector, especially in priority fields, while loans are tightened to sectors posing high potential risks; (4) inflation rate is kept under control, along with stable exchange rates and a record high of foreign exchange reserves; (5) both real estate and stock markets are showing positive improvements towards sustainability; (6) step by step Vietnam’s business and investment environments have been improved, in turn building trust among citizens,… [Read full story]